Managing payroll in Vietnam is complex. Between compulsory insurances, personal income tax (PIT), trade union contributions, and ever-changing wage caps, both local and foreign companies often struggle to stay compliant.

That’s why we’ve created the Vietnam Payroll Companion 2025 — a practical, up-to-date reference for HR teams, accountants, and business owners. This guide gives you a clear overview of payroll obligations, rates, and calculations in Vietnam from 1 January 2025.

Key Payroll Updates for 2025

• Minimum Wages (from 1 July 2024):

  • Region 1: 4,960,000 VND

  • Region 2: 4,410,000 VND

  • Region 3: 3,860,000 VND

  • Region 4: 3,450,000 VND

• Compulsory Insurance Contributions:

  • Social Insurance: Employer 17.5%, Employee 8% (Cap: 46.8m VND)

  • Health Insurance: Employer 3%, Employee 1.5% (Cap: 46.8m VND)

  • Unemployment Insurance: Employer 1%, Employee 1% (Cap: 99.2m VND; foreign employees exempt)

  • Trade Union Contribution: Employer 2% of payroll (regardless of union presence).

• Personal Income Tax (PIT):

  • Progressive rates from 5% to 35% for residents.

  • Flat 20% for non-residents.

  • Deductions: 11m VND/month personal allowance, 4.4m VND/month per dependent.

Why This Matters for Employers

• Payroll compliance in Vietnam is not optional — errors can lead to fines, back-payments, and even personal liability for Legal Representatives.

• Rules often change with government minimum wage adjustments and insurance caps.

• Foreign employees have different obligations (e.g., no unemployment insurance, but must hold valid work permits).

Our companion helps ensure your payroll team has the latest numbers at their fingertips.

Who Should Use This Guide?

• HR managers navigating staff contracts and benefits.

• Accountants & payroll processors ensuring correct PIT withholding.

• Foreign investors unfamiliar with Vietnam’s labor and tax environment.

• Legal Representatives needing oversight of compliance risks.

Download the Full PDF

The PDF version includes:
✔️ Detailed payroll calculation examples.
✔️ Breakdown of insurances, taxes, and contributions.
✔️ Employer and employee obligations at-a-glance.
✔️ Notes on common compliance pitfalls.

Next Steps

If you would like obtain further advice on anything related to human resources, labour law compliance, payroll compliance or payroll support, then reach out to us via our contact page: https://www.alitium.com/contact/